COUNCIL tax bills in one of the region's authorities were thrown into chaos yesterday when the Government warned it faced capping.

Hambleton District Council, in North Yorkshire, is among nine authorities in England in line for capping after failing to abide by strict guidelines to keep increases below 5.5 per cent.

It has three weeks to decide whether to cut bills voluntarily or challenge ministers' decision that the rise - due to come in next month - is excessive.

If council leaders refuse to back down, the expected General Election, in May, will provoke chaos, with readjusted bills unlikely to be sent out until August at the earliest.

Council taxpayers would then have to pay the higher amount for the first six months of the financial year, with much lower payments in the autumn and winter.

Branding it ludicrous, council leader Arthur Barker said its proposed band D rise of £12 a year worked at only 23p per week. At £80, the charge would be £100 below the Government's target.

Capping 'lesson' - Page 8